BofA Data Show Wage Growth Gap Between Low- and Middle-Income Workers Has Disappeared

According to Axios, new data from the Bank of America Institute suggest the wage-growth gap between lower- and middle-income workers has vanished, with after-tax wage growth for lower-income households estimated at 4.1% in June, up from 2.9% in May. That compares with 3.4% for middle-income households and 4.2% for higher-income households, which Bank of America Institute said is the narrowest divide between low-income workers and higher earners in years. Separately, PNC, using its customer data, said the spending gap between lower- and higher-income households is the smallest in three years, and its senior economist said on X that the gap excluding gasoline narrowed further last month. Bank of America attributed the wage convergence to stronger hiring and job-switching among lower-income workers, while cautioning some of the June acceleration could reflect tax-withholding adjustments tied to changes under the One Big, Beautiful Bill Act; Axios noted the wealth divide remains, with stock and home-equity gains still concentrated among affluent households.